USPS warns of default on retiree benefits - Not the Post Office!!
 

By Jared Serbu
Reporter
Federal News Radio

The U.S. Postal Service will begin to default on its financial obligations just over four months from now unless Congress takes action to relieve it of its obligation to pre-fund retiree health care accounts, its leader told lawmakers Tuesday.

USPS expects to post a net loss of $8.3 billion for this fiscal year, nearly as much as it lost last year. And with its $15 billion debt limit due to be reached this year, more borrowing is not an option, Postmaster General Pat Donahoe said in testimony before a subcommittee of the Senate Homeland Security and Government Affairs committee.

"Despite our aggressive cost cutting and revenue generating efforts, we are in serious financial predicaments today," he said. "As things stand, we do not have the cash to make the $5.5 billion prepayment for future retiree health benefits due on September 30. And we may be forced to default on other payments. This could extend to operational expenses."

USPS contends the prepayment for future retirees is a financial obligation that none of its competitors, nor any government agency, has to live with. The requirement came along with a 2006 postal reform bill that was passed when mail volume was at its peak.

Link to Article

No Fear, Just Knowledge!:pimp

privatize the postal service and take the power back!

http://money.cnn.com/2009/08/03/news...atize.fortune/

theyve been going under forever.

And don't deliver the damn mail every day. How ridiculous. Two or three times a week is all anyone needs.

:1orglaugh

their answer:

double :1orglaugh

"Despite our aggressive cost cutting and revenue generating efforts"

I get a good laugh off that one myself. Especially each time I see a USPS commercial or their advertisement, or sponsorship of some cycling team or whatever.
:disgust

I get a good laugh looking at my Soviet Russia upload :1orglaugh

In other related news


Treasury to tap pensions to help fund government
http://www.washingtonpost.com/busine...y.html?hpid=z1


It's all a scare tactic to get people to accept raising the debt ceiling.

End the Fed.

You do realize the USPS takes in ZERO tax payer $$$$. Yeah go ahead let a coporation take it over. Then people will be bitching about paying $1.50 to mail a letter.

Actually the USPS has proposed to eliminate saturday mail and close down smaller but expensive to operate Post Offices and everyone throws a hissy fit. You can't have it both ways.

Many large government and private pension plans invested heavily in mortgage based securities that have since failed.

I predict that this is the first of many such announcements to come.